Chirey Forges Alliance With DHL to Enhance Auto Parts Logistics

Chinese automotive manufacturer Chirey Motor has forged a strategic alliance in Mexico with DHL Supply Chain, aiming to optimize its auto parts logistics and meet market demands.

"This strategic alliance with DHL Supply Chain is part of our strategy to ensure high customer satisfaction in Mexico. We are committed to automotive excellence, and enhancing the customer experience is one of our main goals as a company," says Martín Martínez, After-Sales Manager, Chirey Motor Mexico.

The agreement, formalized on Nov. 16, 2023, addresses the challenges Chirey Motor Mexico faced in its distribution operations, including lengthy shipping times and space constraints in its 2,000m² warehouse. Through the strategic partnership with DHL Supply Chain, Chirey Motor Mexico aims to improve delivery times through the relocation of over 92 containers, totaling 240,000 pieces, from the old warehouse. Additionally, the alliance is expected to bolster Chirey Motor Mexico’s inventory of essential parts through the receipt of an average of 30 containers per month.

The implementation of the new logistics and distribution system will improve same-day fulfillment times and reduce transit times to one to three days. These optimizations project that Chirey Motor Mexico will achieve an equivalent of US$7.1 million in stored parts, with a seven-month sales availability. Fill rate is expected to increase to 92.0%, surpassing Mexico’s industry average, which stands at 90%.

"We are proud to work with Chirey Mexico as its strategic partner in the supply chain. This alliance represents an opportunity for its expansion in Mexico and allows us to continue consolidating our leadership in developing solutions for one of the country's most significant sectors," says Mario Rodríguez, President, DHL Supply Chain Mexico. 

DHL Supply Chain is allocating over 6,000 m² to the operations of Chirey Motor Mexico, Omoda/Jaecoo, and EXEED. The alliance is expected to benefit both Chirey Motor Mexico and its customers.